Quote:
Originally Posted by blankall
I went fixed with my last two mortgages, as things were really low. Only for 5 years. After having lived through this latest experience, I'd definitely go for a 10 year fixed if things ever got to around 2.5% on a 10 year again.
You have to weigh the value of certainty in your bill payments.
Right now though, I'd go variable. My current mortgage holder, CIBC, has a .8% spread between variable and fixed. I see rates going below .8% of where they are now.
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I think this much is clear - however, you'll pay higher than the fixed rate for at least several months before you dip below, so at best you are probably breaking even around 1.5 years or so? And then rates have to stay lower in order for it to pay off.
Might be the worse decision long term, but I'm tempted just want to lock in around 4% right at renewal for a 5 year term and then don't worry at all about the moving rate. The piece of mind could be worth it.